Infonavit Law: What you should know about the reform

The changes will generate new markets and modify the way of operating of various sectors.
Infonavit Law: What you should know about the reform
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This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.
This story originally appeared on Alto Nivel

By Antonio Sandoval

This weekend, the Morena legislators in the Chamber of Deputies assured that they will try to authorize via fast track , that is to say quickly, the modifications to the Law of the Institute of the National Housing Fund for Workers (Infonavit) , sent some ago weeks by the holder of the executive power.

If authorized, major changes will be made in the way Infonavit has operated so far. Above all, there are two transcendental changes that have caused some confusion, because the full text of the reform proposals is not known, but with the data we have, some of the great changes can be anticipated and how it will impact or benefit Mexican workers.

The two major changes

1. From triangulation to "inverse triangulation"

Until now, a worker chose the house or apartment he wanted to buy and initiated a series of procedures either with the construction company, a real estate agency or directly between individuals. Once the series of legal requirements had been covered, Infonavit paid on behalf of the worker to whom it sold so that it would grant possession to the new owner.

The worker bought his house or apartment, but in fact he never had the money in his possession, he was only aware of his debt and commitment to Infonavit to pay.

With the new law, all kinds of intermediaries in the matter were ended. The legal requirements are maintained and deepened in some cases, but Infonavit will no longer pay any company or person the resources derived from the operation . Once the credit is authorized, Infonavit will deposit the authorized amount of the loan directly into the worker's bank account, and the worker in turn will be free to choose the house he wanted or another.

It is still somewhat confusing because, if the worker has already made a commitment to a real estate agency or company, then he is supposedly obligated to pay; that is, for Infonavit to lend the resources, there must already be at least some document that supports the purchase that the worker will make, otherwise, the fear of some analysts revolves around the possibility that the beneficiary is going to spend money on other things.

As the reform is planned, the change basically consists of a kind of “inverse triangulation”. That is to say, now instead of Infonavit paying the builder on behalf of the worker, it will give the money to the worker and he must pay the builder, supposedly the rest does not change or does not change much.

2. Before only house or apartment, today land and self-construction:

This is perhaps the most relevant change in the federal Executive's proposal, a truly far-reaching, far-reaching change.

Until now, the credits granted by Infonavit are used only for the acquisition of houses and / or apartments, they are limited to the purchase of housing, of units already built.

This is, of course, a limitation for the expansion of other markets and for the needs of the workers and even their tastes. The amendment indicates that these credits may also be used for the acquisition of land . However, it is very important to note that there are specifications on what type of land, places and characteristics and services. The foregoing demolishes any expectation that has been generated that it will be possible to buy anywhere, that will not be the case. In addition to the purchase of land, the infonavit credit may also be used for the construction of housing on the acquired land or on some other property owned by the worker.

Other adjustments include the possibility of paying a home purchase loan with the infonavit loan, and acquiring a second loan after the first has been paid. The changes could be authorized shortly, as expressed by lawmakers . This will surely mean a different way of operating in some sectors such as construction, which now must not only go out to find the client, but also compete with more quality. Likewise, a market for the sale of land financed with loans from Infonavit opens, something practically non-existent until now.

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